Donald trump considering dropping slush fund for supporters 20260602 p60313.html – Breaking News & Latest Updates 2026
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Donald Trump considering dropping slush fund for supporters

Nick Pearson
Nick Pearson

Updated . First published at

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Donald Trump is reportedly backing out of his controversial slush fund to pay his supporters who were prosecuted for criminal acts.

The $A2.4 billion legal fund using taxpayer money would go towards so-called victims of government weaponisation.

Donald Trump has received widespread criticism for his fund for his supporters.

Donald Trump has received widespread criticism for his fund for his supporters. AP Photo/Alex Brandon

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That includes people jailed for their roles in the January 6 Capitol riots, later pardoned by Trump.

But the president is reportedly backing down on his push for the fund after a federal judge in Virginia halted its creation.

The fund would distribute $US1.776 billion to claimants through a board appointed by the Trump administration.

There would be no oversight of the board and no appeals process.

The specific number for the fund was in reference to the year 1776, when the US Declaration of Independence was signed.

The plan attracted widespread criticism, with few elected Republicans willing to defend it.

“It was a nonstarter from the get go,” Mississippi Senator Roger Wicker said today.

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Nevertheless, Democrats have proposed legislation which would stop it taking place.

“If Trump and Republicans are truly abandoning this corrupt scheme, they should have zero problem banning it in law,” Democratic Senate Leader Chuck Schumer said.

“This week, Senate Democrats will push legislation to ban this slush fund and ensure no president can ever do this again. Trump’s word is nowhere near enough.”

Republican Senator Ted Cruz of Texas.

Republican Senator Ted Cruz of Texas. AP Photo/Mariam Zuhaib

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Texas Senator Ted Cruz said about half of his fellow Republicans in the Senate appeared willing to side with Democrats on the vote.

There are also multiple lawsuits against the legal fund, including one filed by police officers assaulted on January 6.

“In the most brazen act of presidential corruption this century, President Donald J. Trump has created a $1.776 billion taxpayer-funded slush fund to finance the insurrectionists and paramilitary groups that commit violence in his name,” the lawsuit read.

“The fund encourages those who enacted violence in the President’s name to continue to do so.”

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The fund was created as part of Trump’s settlement deal with the tax office after he sued them for $US10 billion.

Under the settlement deal, the Internal Revenue Service (IRS) is also prohibited from scrutinising the tax returns of Trump and his family.

The settlement was made after the judge assigned to the case asked the administration to explain why the president could be suing a department he was in charge of running.

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